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Answer

how can i change from a corporation (single person) to a sole proprietor?

Thank you.

Business loss

Hi Mark, Business losses can be carried back to the preceding 3 tax years or carried forward for up to 20 tax years. Complete Schedule 4 of the T2 Return to carry-back a loss.

rental property + full time job

Hi Jacky, Canadian tax returns are filed separately and there is not an option to file jointly. If you are the owner of the 2 properties, you must report the rental income and expenses on your return. If your wife is performing part-time services (e.g. property management, repairs and maintenance), consider paying her a salary … Continue reading rental property + full time job

What liability GIFI code should i use to Record an employee expense that will be reimbursed?

Hi, Use GIFI Code 2621, Trades / Accounts Payable.

Tax implications of canadian non resident selling stock

Hi, You need to file a T1 Departure Return and you may owe departure tax. Gains / losses from marketable securities sold after your departure date are not taxable in Canada.

Are non-sRED Software Development Costs Deductible?

Hi, Yes, you can deduct expenses incurred for software projects that don’t qualify for the SR&ED program. Note that capital assets purchased in the year are depreciated over a period of time.

Health Benefits taxation for a Shareholder

Hi Mariam, Group benefits (medical and dental) are not a taxable benefit, so long as you (shareholder) are also an employee and the benefits you receive are the same as the rest of the employees.

are Owner Contributions and Self Employment Tax Withholdings deductible?

Hi, It appears that you are on your company’s payroll system. In this case, the company should issue a T4 slip to you, and not a T4A. The company can claim a tax deduction for the gross salary paid, and the employer portion of CPP premiums paid (you are EI exempt). You cannot claim a … Continue reading are Owner Contributions and Self Employment Tax Withholdings deductible?

What to do when CRA violates Income Tax Act Subsection 220(4.5) and owes non-resident tax refund ?

Hi, Please complete form RC4288 Request for Taxpayer Relief and send it to the CRA.

what bank account do expenses that are partially personal come out of

Hi Jill, Pay for these expenses yourself and then have your company reimburse you on a monthly or quarterly basis for the business use portion of your expenses.

Can the Shareholder use personal name on Title?

Hi, You should consult with an attorney regarding the legality of the contract. At a minimum, your grandmother should have received independent legal advice.

2023 TD1 Federal Form – line 7

Hi, Enter $15,000 on line 1 and 7 of form TD1. Enter $0 on line 8 since you are married and don’t meet the conditions for the eligible dependent tax credit. The total claim amount on line 13 should be $30,000.

is a medical corporation a qualified small business corporation

Hi, Your shares are not QSBC shares if your corporation did not carry on an active business in the 24 months prior to sale.

Will I Still be a tax resident in Canada?

Yes, you will still be a tax resident of Canada, which means you are taxable in Canada on your global income. To avoid double taxation, claim a foreign tax credit on your Canadian return for the American taxes paid.

Do US tax residents need to Report their cDN Corporations to the IRS?

If you become a US resident for tax purposes, you will need to file form 5471 with the IRS in respect of your Canadian corporation. In addition, you will be subject to Canadian departure tax when you leave Canada. I suggest that you dissolve the corporation and pay yourself a final cash dividend prior to … Continue reading Do US tax residents need to Report their cDN Corporations to the IRS?

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